THE future of Tasmania’s three regional health organisations remains in limbo despite speculation the State Government is close to announcing changes.

Graham Houghton, head of the Tasmanian Health Organisation’s Governing Council, has told the Mercury that the future of the THOs is being considered as part of the government’s budget process.

“The Minister recognises a need for change and he is very aware of what needs to be improved,” Mr Houghton said.

A significant health announcement is expected at this weekend’s Tasmanian Health Conference in Hobart.

Mr Houghton’s comments follow the May release of the Integrity Commission’s investigative report into allegations of nepotism and conflict of interest by senior health managers in the Tasmanian system.

The report found that the THOs did not have enough oversight of their CEOs and governance arrangements needed to be more “robust” in order to manage CEOs.

It also contained details of THO-South CEO Jane Holden and THO North-West CEO Gavin Austin recruiting family members and associates without following state public service protocol. Ms Holden’s position was terminated and Mr Austin’s alleged misconduct is the subject of a state service investigation. Both CEOs have said they will fight the allegations.

Health Minister Michael Ferguson said at the time the IC report on Ms Holden’s conduct as head of the Royal Hobart Hospital and Tasmanian Health Organisation (THO) South was not the reason for her losing her job.

Presenting the report to Parliament in June, Mr Ferguson said Tasmanians would be appalled by its content “because once again we see wasteful practices in health, and patient care taking a back seat to allegations of nepotism and special deals for special mates”.

He said the report was about “yesterday’s health system” and the Government was determined to “challenge the status quo”.

Mr Houghton said despite the speculation, he had not yet been informed of a decision concerning the future of THOs.